Beacon's Fixed Annuity Premium Study Reports Fourth Quarter's Best-Selling Products

Allianz MasterDex again the overall top seller; Allstate Financial has best-selling bank and captive agent products


EVANSTON, Ill., March 29, 2005 (PRIMEZONE) -- MasterDex, an Allianz Life (NYSE:AZ) indexed annuity, was the fourth quarter's top-selling product in the Beacon Research Fixed Annuity Premium Study for the second consecutive period. Two book value products -- the Allstate Financial (NYSE:ALL) Performance Plus and New York Life's LifeStages/Mainstay Single Premium Flexible Annuity -- were number two and three, respectively, with the Sun Life (NYSE:SLF) Keyport Index Multipoint taking fourth place. ING US (NYSE:ING) broke into the top five for the first time in 2004 with its Secure Index annuity. Fourth quarter sales were reported for some 193 products by 46 participating insurance companies.



 RANK  PRODUCT NAME      PRODUCT NAME          PRODUCT TYPE
  1    Allianz Life       MasterDex             Indexed
  2    Allstate Financial Performance Plus      Book Value
  3    New York Life      LifeStages/Mainstay
                           Single Premium
                           Fixed Annuity        Book Value
  4    Sun Life Financial Keyport Index
                           Multipoint           Indexed
  5    ING USA Annuity &
        Life               Secure Index         Indexed

For the second consecutive period, Allstate's Sure Horizon was fourth quarter's top-selling market-value adjusted (MVA) product. Genworth Financial (NYSE:GNW) was the leader in fixed immediate annuity sales, a position it maintained throughout 2004.

The Allianz MasterDex led fourth quarter sales through independent producers. Of products sold through banks and S&Ls, Allstate Financial's Performance Plus was the top seller. Allstate MVA products led sales in two other channels -- Sure Horizon among captive agents and Choice Rate (with MVA) among large/regional broker-dealers. Another MVA product -- the Hartford (NYSE:HIG) Saver -- was the best seller among independent broker-dealers. Genworth's immediate annuity topped sales through wirehouses.(1)



 CHANNEL              COMPANY             PRODUCT        PRODUCT
                                                           TYPE
 Banks and S&Ls       Allstate Financial  Performance
                                           Plus          Book Value
 Captive Agents       Allstate Financial  Sure Horizon   MVA
 Independent
  Producers           Allianz Life        MasterDex      Indexed
 Independent Broker-
  Dealers             Hartford            Saver          MVA
  Large/Regional Broker-
   Dealers            Allstate Financial  Choice Rate    MVA
                                           (MVA)
 Wirehouses           Genworth Financial  Immediate      Immediate
 Other                Genworth Financial  Capital
                                           Provider
                                           Advantage     Book Value

Fourth quarter's Fixed Annuity Premium Study also documented a continuing trend toward shorter rate terms. One-year interest guarantee periods (IGPs) accounted for 83% of book value sales. Although one-year rate terms were less dominant among MVA products, their share of MVA sales increased from 18% in third quarter to 26% in fourth quarter. There was an even greater shift toward five-year IGPs, from 26% of third quarter MVA sales to 41% in fourth quarter.

"The popularity of shorter rate terms in general, and especially among MVA products, is an indication that the market expects interest rates to increase," said Jeremy Alexander, president and CEO of Beacon Research.

About the Beacon Research Fixed Annuity Premium Study

The quarterly Study is the first to track and analyze product-level fixed annuity sales on an ongoing basis. It features commentary by Milliman USA, a leading actuarial consulting firm recognized for its annuity expertise. Combining Beacon's capabilities in fixed annuity information with Milliman's knowledge and analytic skills, the Study provides timely market intelligence of the highest quality. It's designed to report what's moving in each channel and why. The rapid growth in Study participation is testimony to the need for this information.

About Beacon Research

Beacon Research is an independent research organization founded in 1997. It compiles market intelligence on fixed annuity products for subscribers to its web-based systems at www.annuitynexus.com. Carriers access these systems to support product development, rate setting and competition research. Distributors use them for product analysis and selection. The new AnnuityNexus Sales Support System is an important resource for retention teams and sales desk staff throughout the distribution chain. Beacon also licenses information and software tools to other platforms, including websites for sales representatives, AnnuityNet's annuity automation platform, and LifeLink Corporation's insurance sales platform. Beacon's fixed annuity benchmark series -- the industry's first - is available through Ibbotson Associates. Directly and through strategic alliances, Beacon information can be accessed by hundreds of financial institutions and distributors.



 Note(1): Number of products for which sales were reported per
 channel:  Independent Producers -- 84; Banks and S&Ls -- 46; Captive
 Agents -- 82;  Large/Regional Broker-Dealers -- 32; Independent
 Broker-Dealers -- 27; Wirehouses -- 14; Other -- 7.  Some
 participants, including Sun Life, did not provide product sales at
 the channel level.

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